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Hey 👋🏼,

I’m not the biggest sports fan, but my family is absolutely obsessed. Because of them, I’ve grown to really enjoy the occasional football game or tennis match; it’s hard not to get caught up in their excitement.

So, when I find myself researching the world of sports memorabilia as an investment opportunity, it all makes sense. That passion for the game? I totally get how it can turn into wanting to own a piece of its history. 

A lot of times it’s hard to connect an investment opportunity with a clear emotional connection, but in the case of memorabilia, it really isn’t hard at all. 

Which is why I’ve become fascinated by this asset class. 

Today I'm going to cover:

• Current state of the sports memorabilia market 
• What's actually worth collecting?
• How much money do you need?
• Where to buy and sell 🫱🏽🫲🏼
• Potential risks
• A sports memorabilia success story from an everyday investor
• Where is the market potentially headed 🛣️

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Let's dive in 

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The State of Play 📈

Think the stock market's had a good run? 

The sports memorabilia market hit $26 billion in 2023, and there’s strong growth predicted in the market, with consulting group Market Decipher forecasting it will reach $227.2 billion by 2032. 

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But it hasn’t been a smooth, straight climb for the sports memorabilia market.

Back in the 1970s, sports cards weren’t really seen as investments. That’s a big reason why older cards in pristine condition can sell for eye-popping prices today - they’re so rare. Fast forward to the mid-1980s, and prices for newer cards started skyrocketing, with people treating them as solid long-term investments. But then manufacturers got greedy, cranking out cards in the late ‘80s and early ‘90s. 

The market couldn’t keep up, and prices tanked.

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It took a while, but things bounced back. Then came the Covid-19 pandemic, and the market absolutely exploded. Between 2019 and 2023, sports card values shot up by 570%, and sales of vintage equipment climbed 400%.

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Dip post covid

Since those highs, sports collectibles (like many other collectibles) experienced a notable downturn last year, however, as elevated interest rates made high-yield savings vehicles an attractive alternative to other investments.

Dip in the market an opportunity?

This recent downturn means now could actually be a good time to dip into the market. 

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What's actually worth collecting?

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But how to decide what to buy and how much to spend, when collectibles have no cash flow, earnings, dividends, or intrinsic value?

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My favourite advice when going deep into this asset, was from two seasoned experts: Chris Ivy, director of Heritage’s sports auctions, and Howard Epstein, a Charlotte, N.C.–based wealth management advisor and lifelong sports memorabilia consultant.

“Focus on the best of the best and the all-time greats,” is what ChrisIvy recommends, noting the skyrocketing value of memorabilia linked to legends like Babe Ruth, Mickey Mantle, Ty Cobb, Wayne Gretzky, Michael Jordan, Tiger Woods, Muhammad Ali, and Tom Brady. “These are names that future generations will always recognize,” he explains.

Howard Epstein shares a similar perspective, advising collectors to “buy the highest quality you can afford and choose items you truly like.” He also highlights Lou Gehrig, Willie Mays, Hank Aaron, Jackie Robinson, Roberto Clemente, Joe Namath, and Johnny Unitas as excellent options to consider.

Both of them stress the importance of focusing on retired or deceased players, especially for items in top condition or game-used pieces. They also point to grading services like Professional Sports Authenticator (PSA), which evaluate the authenticity and condition of collectibles on a scale from 1 to 10. The condition can drastically affect value - a PSA 10-graded 1976 Walter Payton rookie card recently fetched $41,100, while a PSA 1 of the same card goes for under $150.

While it’s possible to take a chance on newer or current athletes, it’s important to understand the risks.

Speculating is exactly that - speculating.

Speculators often invest in memorabilia tied to highly hyped young athletes, which can command steep prices despite their limited track records. Others gamble on more affordable items from lesser-known players, hoping they’ll rise to stardom. However, most speculators end up losing money, as the majority of athletes never achieve lasting success.

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Types of Sports Memorabilia

Before I dive into how much you might need to spend, let’s look at what items can prove lucrative.

Autographed Memorabilia
Signed stuff like photos, jerseys, balls, or equipment is a huge hit with collectors. The value really depends on a few things: how famous the athlete is, how rare the autograph is, and the condition of the item itself.

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Trading Cards
Sports cards can be gold, especially if they feature legendary players or come from iconic sets. Rookie cards for stars like Michael Jordan, Wayne Gretzky, and Tom Brady? Those are collector favorites. And if the card’s in mint condition, you’re talking serious money.

Game-Used Gear
There’s something special about items actually used in a game—bats, balls, jerseys. If it’s tied to a historic moment, even better. These pieces are super valuable because they connect directly to the athlete and the event.

Championship Rings and Trophies
Championship rings and trophies are basically the holy grail of sports memorabilia. They’re rare, they’re tied to big wins, and they scream prestige. But they’re also some of the priciest and hardest items to get your hands on.

Historical Memorabilia
Think Olympic medals or gear worn during iconic games. These pieces are a slice of sports history, which makes them both unique and valuable. Over time, their importance (and price) only grows.

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How much money do you need?

The good news is, you don’t have to be a millionaire to dive into sports memorabilia investing. However, it's important to be realistic about the costs involved. Starting small can mean spending anywhere from $500 to $1,000 on modern autographed items, lower-grade vintage cards, or team-issued gear. These items can be a great way to get your foot in the door without breaking the bank.

If you're ready to level up, you’ll enter the middle of the road range, which could set you back anywhere between $5,000 and $10,000. This could include game-used equipment from current stars, high-grade modern cards, or championship memorabilia. These items offer a great balance between value and risk and are ideal for investors looking to build a solid collection.

For those with a bigger budget, there's always whale territory, where investments can easily exceed $50,000. This range includes vintage graded cards, game-worn jerseys from legends, and championship rings—high-value pieces that can offer substantial returns but come with higher risks.

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Where to buy and sell Sports Memorabilia

eBayeBay is hands down the biggest player when it comes to sports memorabilia—especially for cards. With over 45 million listings, you’re bound to find something that fits your budget, whether it’s new or pre-owned. It’s a trusted platform, but you’ll want to do your homework on sellers to avoid any issues.

Pristine MarketplaceFor those who want the real deal, Pristine Marketplace is a great option. They specialize in authentic signed memorabilia from major leagues like the NFL, MLB, NBA, and NHL. Plus, they offer a lifetime authenticity guarantee, so you can buy with confidence.

Fanatics CollectRecently launched by Fanatics, this platform is a newer but solid choice for buying. They offer both fixed-price listings and auctions, making it easy to find what you’re looking for. They also offer vaulting services, so if you're looking to store your collection safely, this is a good option.

MySlabsMySlabs is perfect if you’re dealing mostly in sports cards. They have lower transaction fees than some of the bigger platforms and a more curated group of buyers and sellers. If you’re looking to build a network of serious collectors, this could be a great choice.

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🚨 Risks:

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Counterfeit Warnings:
First off, counterfeits are a huge concern. Fakes are getting more advanced, and even experts sometimes struggle to spot them. The more valuable the item, the more likely it is to be targeted by skilled forgers. So, authentication is key - don’t skip this step, however tempted you might be.

Market Rollercoaster:
Next up, the market can be unpredictable. It’s had its highs and lows - just look at how trading cards surged during the pandemic and then cooled off, with auction volumes dropping by 60% since 2022. You’ve got to be prepared for those ups and downs, because the value of memorabilia can swing wildly.

Player Drama:
Another thing to keep in mind is how an athlete's reputation can affect the value of their memorabilia. A scandal can tank prices fast, even long after you’ve made the purchase. It’s a risk that’s tough to predict, but definitely worth considering when buying.

Storage and Insurance Costs:
Keeping your memorabilia in top condition can get pricey, too. You need to think about things like temperature, humidity, and light exposure. Plus, if your items are really valuable, storing them safely can cost a lot. Insurance isn’t cheap either, especially if you’re not regularly updating valuations. An item that was worth $400,000 a decade ago could easily be worth millions today.

Other Things to Watch For:
Sports memorabilia can also be tough to sell quickly - it’s not always easy to find a buyer, and it could take months to get a deal done. Without the right market knowledge, you might end up overpaying for something or making a poor investment. Also, the condition of an item is everything - one small scratch can drastically lower its value. And when it comes to historical pieces, authentication can be both tricky and expensive.

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Success Story:

Brendan Hill's journey in sports memorabilia investing is an excellent example of an ordinary investor's success story and personally it's one I love!

Brendan started with a simple idea: buying signed football jerseys in Europe and selling them at a profit in Australia. This strategy worked well because:

1. Australia's distance from Europe made it difficult for locals to source signed clothing.
2. There was a growing demand for Premier League memorabilia in Australia in the mid-2000s.

Hill's business model proved successful, and he grew it into a profitable, multiple six-figure earning website. He capitalized on fans' emotional connections to their favorite teams and players, creating an experience and building a community around sports memorabilia.

Key factors in Brendan's success:

1. Identifying a market gap
2. Leveraging the increasing popularity of the Premier League in Australia
3. Building a community around the products
4. Focusing on creating an experience for customers

After running the business for 5-6 years,Brendan sold it to a buyer in Australia, resulting in a significant financial gain. 

Where’s the market headed?

As I mentioned already, the sports memorabilia market is set to experience some serious growth over the next few years. It’s projected to hit USD 52.62 million by 2032, growing at a solid rate of 13.74% annually from 2023. Some even predict the market could soar to a staggering $227.2 billion by the same year, up from just $32.4 billion in 2023.

There are a few key reasons for this boom. For starters, online platforms are making collectibles more accessible than ever. People also have a deep emotional connection to these items, often tied to nostalgia, which only increases their appeal. Plus, with the rise of blockchain tech, it's easier to authenticate these items, giving buyers more confidence in their purchases. Another driving factor is how memorabilia is becoming more embedded in pop culture and media. And of course, the scarcity and rarity of these items make them an attractive investment for those looking to diversify their portfolios.

The market is seeing growth across various segments too. Sports trading cards alone are expected to reach over $51 billion by 2033, while action figures could hit $15.3 billion by 2031. Autographed items are also in high demand, adding to the overall trend.

Geographically, Asia-Pacific led the charge in 2023, but North America is expected to see significant growth as well over the next few years.

With all this rapid expansion and rising valuations, it’s looking like sports memorabilia could be on its way to becoming a new blue-chip investment class - one that’s even outpacing the S&P 500 in recent years.

So even someone who's not a sports nut  might find it hard to ignore this as a potential opportunity!

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Hope this was insightful!

Jason

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DISCLAIMER: None of this is financial advice. Finbrain is strictly for educational purposes.

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